Currency pair Pound/Dollar GBP/USD continues to move as part of the fall and the formation of the “Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the rate of the Pound to the US Dollar on Forex is 1.2918. Moving averages indicate a short-term bearish trend. Prices broke through the area between the signal lines downward, which indicates pressure from the seller of the currency pair and a potential continuation of the fall of the asset. At the moment, we should expect an attempt at a bullish correction of the British Pound against the US Dollar and a test of the resistance area near the level of 1.2945. Where again should we expect a rebound and the beginning of a fall in quotations of the British Pound against the US Dollar. The target of the downward movement of the currency pair, in the Forex forecast for October 16, 2020, is the area at the level of 1.2615.
GBP/USD Forecast Pound Dollar October 16, 2020
An additional signal in favor of the fall of the currency pair will be a test of the trend line on the relative strength index (RSI). The second signal in favor of a decline will be a breakdown of the lower border of the upward channel. Cancellation of the option to drop the pair Pound/Dollar will be a strong growth of the pair with quotations closing above the level of 1.3145. This will indicate a breakdown of the resistance area and continued growth of the Pound/Dollar pair to an area above the level of 1.3445. It is worth waiting for confirmation of the pair’s fall with the breakdown of the support area and closing the price below 1.2815.
GBP/USD Forecast Pound Dollar October 16, 2020 suggests an attempt to test the resistance area near the level of 1.2945. Then, the continuation of the fall with the target below 1.2615. An additional signal in favor of a decline in the British Pound will be a test of the resistance line on the relative strength index (RSI). Cancellation of the fall option will be a strong price increase and a breakdown of the 1.3145 area. This will indicate a continued rise in the pair with a potential target above the level of 1.3445.
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